Homework assignment for Chapter 5
5-5- Distinguish between hedging and speculative activities with regard to derivatives
- hedging is designed to protect the company against fluctuations in market
instruments. Speculative activities seek to pro
Problem Three: Goodwill Determination:
Austin Manufacturing purchase 100% of a similar manufacturing company name FIN
470, by issuing 20,000 shares of their common stock at a market price of $35.00. FIN
470 has the right to add three members to Austin Man
Company A owns 35% of Company B. Below is a summary of Companys B Financial Statement.
Balance Sheet @ December 31, 2010
Chapter 7 Homework Assignment
7-5 Describe the 2 methods of reporting cash flow from operations
-Indirect Method: net income is adjusted for non cash items
-Direct this method lists the gross cash receipts and disbursements related to operation
5 distinguish between net income, comprehensive income and continuing income. Cite examples of
items that create differences between these 3
- net income : excess of the revenues and gains of the company over the expenses an
Chapter 05 - Analyzing Investing Activities: Intercorporate Investments
Multiple Choice Questions
38. Trading Marketable Securities:
A. are considered non-current assets.
B. are recorded at amortized cost.
C. are marked to the lower of cost or m